Uber-Like Tesla Network To Launch Next Year

Though details remain sparse, Tesla says that it’ll roll out details on the “Tesla Network” starting next year, some details of which we’re first released in Elon Musk’s “Master Plan Part Deux” this past July. Master Plan quote from Musk below:

“You will also be able to add your car to the Tesla shared fleet just by tapping a button on the Tesla phone app and have it generate income for you while you’re at work or on vacation, significantly offsetting and at times potentially exceeding the monthly loan or lease cost.

This dramatically lowers the true cost of ownership to the point where almost anyone could own a Tesla. Since most cars are only in use by their owner for 5% to 10% of the day, the fundamental economic utility of a true self-driving car is likely to be several times that of a car which is not.”

The Tesla Network apparently goes hand-in-hand with full self-driving at some point too. Musk envisions your car being put to use while your at work, or sleeping or doing something else that doesn’t require use of your own vehicle.

“Please note that using a self-driving Tesla for car sharing and ride hailing for friends and family is fine, but doing so for revenue purposes will only be permissible on the Tesla Network, details of which will be released next year.”

But as Reuters notes, most analysts question the feasibility of an OEM-owned fleet. For example, Barclays analyst Brian Johnson stated:

“While we think ride-sharing/hailing is the future of mass-market mobility, we have some financial concerns with the idea of an OEM-owned fleet.”

From Tesla’s most recent quarterly (Q3 2016) report Q&A, Musk was asked if he would comment “philosophically” about how he was viewing the Tesla network – it it would generate income for Tesla? Or just help develop future products ? Or for market share gain and to help people offset the price of the car long-term?

“I think it’s a bit of both really. This would be something that would be a significant offset on the cost of ownership of a car and then a revenue generator for Tesla as well. Obviously the majority of the economics would go to the owner of the car. Sometimes, it has been characterized as Tesla vs Uber, or Lyft, or something like that. But it’s not Tesla vs Uber. It’s the people vs Uber.”

Guess we’ll find out sometime next year how Tesla plans to make its Tesla Network successful, both for the car owner and for the automaker itself.

Quite the opposite in fact, there isn’t a single state that bans ubers…Only Nevada had a ban but it’s been lifted well over a year ago…There are currently less than ten major cities that ban it…In the case of Austin TX, they claim that if uber drivers would use a thumbprint scanner they would allow them back in…Several home grown ride sharing services (utilizing fingerprint scanners) are allowed to operate…Panama City Beach FL and East Hampton NY where Uber is banned have both said if uber drivers register their vehicles then they’ll allow them to operate…In protest Uber just shutsdown…

And wouldn’t you have to pay a higher insurance rate if you were using your car for that? At the least, insurance rates are based on estimated yearly mileage. If your mileage goes up, so does your insurance rate.

I also find it troubling to read reports that people using their Model S/X for Uber or taxi service are using Superchargers for local charging, so they can get back on the road faster. Superchargers were never intended for that, and that sort of thing is going to make Superchargers unavailable for those who are supposed to be using them — that is, people on road trips.

If Airbnb is any guide, when Teslas can make money for their owners, Teslas will become more expensive, thus forcing reluctant owners to share out their car, simply so they can afford the new higher prices.

I don’t see how the comparison is even remotely applicable. Does occasionally having guests in your house (paying or otherwise) wear out the house? No. Do you have to carry additional insurance on your house to list it on Airbnb? I dunno, but I’m guessing not.

The problem is luxury cars are the hardest to make a profit on…How much is maintenance, still $50/month? How much are tires? I could only see people wanting to use this service to show up to an event…If you work during regular business hours, why would anyone want to pay the assumed premium price to run an errand or get dropped off at an airport when they could just call an Uber X? Heck, in the event of going to an airport Uber drivers usually offer to help with your bags…

Well said. It would make sense for a limousine service to rent out a Tesla S/X for special events. But it’s hard to see how it could be cost-competitive to use one as an ordinary taxi/Uber/Lyft vehicle.

Now, with the Model ≡, it may be different. But I still don’t see why the average person would be willing to rent out his car to strangers. The benefit of owning a car is that it’s available anytime you want to use it. If you rent it out to random people, how could you be sure it would be returned by the time you need to use it again? And what is the risk that someone is gonna throw up in the back seat, or vandalize the car, or otherwise do something to the car which will reduce its resale value?

Looks like another sign that Elon has been in charge of Tesla Motors too long. He needs to delegate control, and the CEO position, to somebody else. Elon can concentrate his time on SpaceX, and heaven knows he could use more time for a personal life, since he’s now a two-time divorcee. I just don’t see this being a good idea for anyone; not Tesla Motors, and not Tesla’s customers. And how soon does Elon think this is gonna happen? He has previously stated he plans to leave Tesla circa 2020; does he really think there will be fully capable self-driving cars before then? Capable of autonomously driving on all public roads, in all but the worse weather conditions? If Elon thinks that will happen by 2020, then I think he’s being wildly over-optimistic. Just my opinion, of course. “Please note that using a self-driving Tesla for car sharing and ride hailing for friends and family is fine, but doing so for revenue purposes will only be permissible on the Tesla Network, details of which will be released next year.” Wut? I suppose Tesla has, or will have, something in the car’s warranty about “no commercial use”, but at worst… Read more »

The one issue I’ve never seen raised about autonomous vehicles is the issue of what might happen to them when they are out and about without anyone in them to put off the scum-suckers from doing what they want to it with no-one round to stop them, or even see them. Sure, you can have them CCTVed-up but…?

Maybe it won’t be an issue but it does seem a fairly significant one when you start thinking about it.

I’m not really sure what you have in mind. Most cars already spend most of their lives unattended, parked. A self-driving car would be in traffic, much harder and less safe to mess with than a parked car.

Following a rather significant court ruling in the UK yesterday, it seems Uber-like companies are in for a serious re-think of their business model. Basically, Uber et al have set up their drivers as ‘self-employed’ – ie no need for holiday pay, maternity leave/pay, pensions etc etc. All that went out the window yesterday and they are now all ’employees’. Uber have appealed…